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1 1 [1] (December 20, 2018)

handle is hein.crs/govywn0001 and id is 1 raw text is: Updated December 20, 2018 Argentina: An Overview Political and Economic Environment Current President Mauricio Macri-leader of the center- right Republican Proposal and the Cambiemos (Let's Change) coalition representing center-right and center-left parties-won the 2015 presidential election in a close race. Macri defeated the candidate of the leftist faction of the Peronist party (Front for Victory, or FPV) led by outgoing President Cristina FernAndez de Kirchner, who was ineligible to run for a third consecutive term. Macri's election ended 12 years of FPV rule by the Kirchners (N6stor Kirchner, 2003-2007, and Cristina FernAndez, 2007-2015). The Kirchners' rule helped Argentina emerge from a severe economic crisis in 2001-2002 but was characterized by protectionist and unorthodox economic policies and increasing corruption. Source: CRS. President Macri moved swiftly to usher in economic policy changes. His government lifted currency controls; reduced or eliminated agricultural export taxes; and reduced electricity, water, and heating gas subsidies. The government reached a deal with private creditors in 2016 that ended the country's 15-year default, which allowed the government to repair its rogue debtor status and resume borrowing in international capital markets. Although adjustment measures contributed to a 1.8% economic contraction in 2016, the economy grew by 2.9% in 2017, according to the International Monetary Fund (IMF). In Argentina's October 2017 midterm legislative elections, in which one-third of the Senate and one-half of the Chamber of Deputies were at stake, Macri's coalition made significant gains but did not win a majority in either chamber. Following the election, President Macri successfully moved tax and pension legislation through Congress despite protests. Argentina at a Glance Population: 44.1 million (2017, IMF est.). Area: 1.1 million square miles, about the size of the United States east of the Mississippi. GDP: $638 billion (2017, current prices, IMF est.). Real GDP Growth: 2.9% (2017, MF est.); -2.6% (2018, IMF forecast). Per Capita GDP: $14,463 (2017, current prices, IMF est.). Key Trading Partners (total trade): Brazil (21.900), United States (I loo), China (IIlo) (2017, INDEC). Legislature: Bicameral Congress, with 72-member Senate and 257-member Chamber of Deputies. Sources: International Monetary Fund (IMF) and National Institute of Statistics and Census, (INDEC, Argentina). In early 2018, the IMF was forecasting almost 2% growth for the year, but Argentina's economic difficulties, including a severe drought affecting agricultural exports, thwarted those expectations; the IMF is now forecasting an economic contraction of 2.6%. Inflation, which was almost 25% at the end of 2017, is forecast to rise to 40% by the end of 2018. As pressure on the peso increased in April, the government turned to the IMF for support. The IMF approved a three-year, $50 billion program in June, with almost $15 billion made available immediately for budget support. As the economy continued to decline, the government reached a revised agreement with the IMF in September to increase its total support to about $57 billion through 2021. After an October 2018 IMF review, Argentina received an additional $5.7 billion, bringing total IMF disbursements to date to about $20.4 billon. Despite wide-scale protests over austerity measures, the Macri government secured legislative approval in November 2018 for spending cuts and tax increases required under the IMF program. Argentina's economic turbulence has taken a toll on President Mach's popularity, which could threaten his political coalition and make a reelection bid in October 2019 more difficult. Although the Peronist party remains divided, a candidate from its moderate faction could pose a strong bid for the presidency. In the foreign policy arena, the Macri government has improved relations with neighboring Brazil and Uruguay and other pro-market countries in the region. Argentina took over the rotating presidency of the Group of 20 (G-20) in December 2017 and hosted the annual G-20 summit from November 30 to December 1, 2018.

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